California voters approved Proposition 4 in November 2025, and, based on an April 30 DWR webinar, the money is now moving from bond language into real program design. The news for mutual water companies is encouraging.
You’re an Eligible Applicant — With No Required Cost Share
Proposition 4 programs administered by DWR explicitly list mutual water companies as eligible applicants. No cost share is required by the bond, which lowers the bar for smaller systems to compete.
Two Major Grant Programs Are Coming
The Watershed Resilience Grant Program will distribute approximately $152 million for drought resilience, source water protection, groundwater recharge and conservation projects. The Sustainable Groundwater Management Grant Program will distribute approximately $320 million to advance groundwater plan implementation, with emphasis on recharge, conjunctive use and subsidence management. Both programs use a two-step process — concept proposal first, then full application — reducing the upfront burden on applicants.
Small Systems and Disadvantaged Communities Are Priorities
At least 40% of bond funds must flow directly to disadvantaged communities and vulnerable populations. DWR has also set aside $3.5 million specifically for small groundwater agencies and $6.5 million for an Underrepresented Communities Technical Assistance Program.
Planning Grants Are a Near-Term Entry Point
The Watershed Resilience program includes a Planning+ solicitation at approximately $8 million per award, covering watershed plan development and immediate implementation of a high-priority project. If your system hasn’t engaged yet, this is the moment to start identifying vulnerabilities and potential partners.
Timeline
Draft guidelines are expected by Fall 2026, with awards anticipated in late 2027–2028. DWR may accelerate the schedule for small groundwater agencies. Learn more at the DWR Watershed Resilience Program webpage, or reach out to DWR at financialassistance@water.ca.gov. CalMutuals is happy to help you think it through